Why Kulicke and Soffa Is Ready to Rebound

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Kulicke and Soffa Industries has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Kulicke and Soffa and see what CAPS investors are saying about the stock right now.

Kulicke and Soffafacts

Headquarters (founded)

Singapore (1951)

Market Cap

$807.1 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$785.0 million

Management

CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Equity (average, past 3 years)

36.8%

Cash/Debt

$494.2 million / $0

Competitors

ASM Pacific Technology

BE Semiconductor Industries

Teradyne


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96%of the 351 members who have rated Kulicke and Soffa believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, personaltrader, tapped Kulicke and Soffa as a particularly attractive bargain opportunity:

The valuation is just comical. Market cap of $300M when you subtract out cash, no debt and P/FCF of 4 (closer to 1.5 when you subtract out cash), P/E of 5 (2 when you subtract out cash) and reasonable P/B. Very cyclical, but poised to weather any storm. Potential growth with increasing smartphone competition and LED market expansion (CFL's have mercury, LED's last 20 years, so market will shift).

Of course, despite its five-star rating, Kulicke might not be your top pick. The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Kulicke and Soffa Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners